Americans paying more for weather damages

A recent study from the Consumer Federation of America found that more Americans are paying larger amounts for weather damages, while insurers are paying less.

The study noted that despite consumers having to foot more of the bill, a recent influx of storms across the United States has forced some home insurance rates to spike in some areas. Approximately 11 states have asked for increases in insurance rates, with most close to 20 percent. The CFA warned against the promotion of such increases, as it could hurt homeowners, especially during a tough time.

"Insurance commissioners should block many of these pending rate increases because they place an unwarranted financial burden on homeowners, many of whom are coping with severe financial difficulties in a bad economy," said J. Robert Hunter, director of insurance for CFA and former federal insurance administrator and state insurance commissioner.

If a consumer feels they are paying too much for their current home insurance plan, it could benefit them by comparing home insurance quotes. However, homeowners should keep in mind that disaster insurance is typically an add-on insurance that they may need to acquire.]]>